All Forum Posts by: Tre DeBraga

Hi Miglena, 
welcome to bigger pockets. Bp has never failed me with any questions I have or finding someone for a job.. I am a realtor in MA and do some investing as well.. feel free to connect with me if you have any questions! What investing strategy do you use?

whats up Daniel, I would maybe look into 203k or homestyle loans.. Find something that needs some work and wrap the mortgage together so that you can add some equity into it from the jump. I would also maybe start looking in other markets outside of that expensive Boston market if thats something you would be willing to trade off. Also try to get on some off market lists.. talk to wholesalers and get on their list, Fb groups, anything along those lines. Feel free to message me.

Hey bigger pockets!
Every time i make a post on here I am getting great feedback so minus well keep posting lol. I am wondering if anyone has good places to research affordable yet healthy/upcoming markets to invest in MA. looking to get into my first househack/203k so just trying to figure out where to look.

whats up BP community. Does anyone have any experience with using an FHA 203k Loan on a multi and turning it into a house hack in Massachusetts? I have been very interested in house hacking for some time but it is hard to make the numbers work. I have came across the 203k loan where the numbers might work better if I find a good deal but there is alot that comes with the 203k loan and I want to make sure I am heading in the right direction.

Quote from @Scott Trench:

I think that you have to take what the market gives you when it comes to house-hacking. 

The problem is: 

A traditionally financed low-down payment house-hack with traditional long-term rents simply won't cash flow during occupancy, or after, in many MCOL-HCOL markets in the US. 

95% leverage at even 5.7% just won't work in a lot of cases right now. Hard to produce cash flow or break even with that much debt, at that rate.

House-hackers, however enjoy certain one time (non-scalable) advantages that should be taken advantage of in the early days: 

- They can assume pre-existing debt like VA and FHA Loans (rather than take it on Subject-To which is dramatically riskier).

- They can rent by the room and self-manage to produce day 1 cash flow.

- Many of these HCOL areas also have strict limitations on AirBnB or short-term rentals... that do not apply to owner-occupants - thus allowing for extreme cashflow potential for house-hackers. If no one but owner-occupants can STR... then that should mean opportunity for owner-occupants who STR their primary residences in many jurisdictions.

- Large remodels or construction projects (Live in Flip) can be self-managed, worked on directly, and the value add, after 2 years, is largely tax free up to certain limits. 

- Many areas around the country allow for ADU Construction - house-hackers enjoy similar benefits to remodeling projects by being naturally on-site for ADU construction.

Putting it all together: 

If I were starting over and looking for a house-hack in Denver, CO today, I'd be looking for a 4 bed / 3 bath property in the $500K - $600K range in an up and coming area (like Aurora near the medical campus). I'd be looking for a property with an assumable mortgage on AssumableLoanFinder.com (Screenshot below of live deals available today for a house-hacker). I'd underwrite the property, with that low interest rate assumable mortgage, to cash flow positively from day 1 as a long-term rental, but be willing and able to use the rent by the room strategy or to rent out part of the property as a Short Term Rental to dramatically increase cash flow during my occupancy. 

The ideal property would meet the above criteria, AND would have a large yard, or ideally, a detached garage that was a suitable candidate for an ADU construction project (CO now allows ADU construction on most properties), and/or a primary structure that had lots of value-add potential.

This might give a one-time (non-scalable) boost to cash flow, offer multiple value-add options, and allow the house-hacker peace of mind, via the assumed mortgage, in long-term breakeven or positive cash flow in the event that the value-add plans end up not being executed, and/or the person has to move out, and rent by the room or STR become unavailable for some reason at a future date.

 Hey Scott, Kind of late to the convo. Just coming across assumableloanfinder.com from your reply to this post. For some reason when I go on the site I can only see Tampa FL and it wont let me see my market. Any idea how to fix this?

Hey Lorenzo, I am also from the boston area. I have done some investing and also an agent. I would assume we are similar in age because you are in college. I would say maybe look into a 203k HOA loan great loans for people our age. you would be able to do a value add and not pay your mortgage until the updates are done up to 1 year. Would have to live in the unit for 1 year but can have all units rented out after that. Kind of like a value add house hack

Hey Brittany, I have dabbled into some investing and am a real estate agent in MA. Would love to connect if you ever have any questions. I would suggest you get over to some investing meet ups in the area. There is plenty in Boston and i usually go to the Worcester meet ups. Good luck

Heavily agree with Nathan Gesner. I will say though peace of mind is huge.

smart. How hard is it to get approved in terms of city approval for something like this?

hey Alex, good on your part for getting into investing. Short term is always tough but not impossible at all especially with the high level of education and good hospitals in MA. I would suggest coming to some investing meet ups and just start talking to others and form a plan based off of that. There is Fb groups with the meet ups like the worcester, MA simplified REI meetup group.

good luck man man and reach out with any questions.